State Bank issues new regulations on guarantee for future home purchases

20/10/2017 11:23

The State Bank of Vietnam has recently issued Circular No 13/2017 to amend the Circular No 07/2015 dated 25 June 2015 on bank guarantee for purchasing homes which are set to be completed in future.

As stipulated in Circular No 13/2017, which will take effect on November 15, commercial banks must issue guarantees for buyers of future property within 10 days from the date of signing the home purchase contract.

Under the Circular, the guarantee for purchasing future homes means banks would implement financial obligations to the buyers on behalf of the developers in case they fail to hand over the property before the committed deadline without refunding the advances adequately.

State Bank issues new regulations on guarantee for future home purchases
The State Bank has issued new regulations on bank guarantee for future home purchases

In addition, the maximum guaranteed amount would be equivalent to the amount that the housing developers are allowed to receive in advance from the buyers.

Only commercial banks that meet two following requirements are eligible to provide a guarantee for home purchases:

- Firstly, banks’s establishment and operation licences should have regulations on guarantees.

- Secondly, banks are not prohibited from providing guarantees in the period of being under special control.

List of commercial banks eligible for providing guarantees for future home purchases will be announced on State Bank’s website. Ineligible banks that are removed from the list must still continue to implement its guarantees until the agreements’s validity.

Currently, over 30 banks in Vietnam are now eligible to provide guarantees for future home purchases. On Tuesday, the State Bank announced that two more banks - Woori Vietnam and CIMB Vietnam – also got the green light.

(Source: Vietnamnews) 

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